Business opportunities in waste management market in Russia

16.06.2017

Moscow and Murmansk region are among pilot regions in Russia to implement a modern waste management infrastructure during the year 2017. This creates opportunities for Finnish companies that provide waste processing and waste-to-energy solutions.

Waste management legislation is tightening in Russia. The year 2017 is officially the Year of Ecology in Russia. During the theme year, Moscow, Murmansk and 23 other pilot regions should modernize their waste management infrastructure. The goal is that by 2019 all the Russian regions will move to modern waste handling.

Four incineration plants to Moscow region

Moscow region generates about 20% of all municipal waste in Russia. In the city of Moscow, almost 90 percent of the garbage goes to landfills, 6 percent is incinerated, and only 4 percent is processed. It can be said that the possibilities in waste management sector are the biggest in Moscow region compared to the rest of the country.

The new waste management scheme envisages a huge increase in recycling rate and elimination of illegal landfills. One of the means of achieving this is incineration: Moscow region aims to build four incineration plants. In addition, all sorts of waste management and recycling facilities are needed. For a city with a 12 million population, Moscow currently has very few recycling points. According to environmental organizations, the number of such stations in 2016 was only 300.

Solutions to handle household and industrial waste in Murmansk

The population of Murmansk region is 758 000. The amount of yearly produced household waste is ca. 250 000 tons. Currently, there is only one old incinerator in the region. Especially illegal waste landfills are serious problem and there is social pressure to find new waste handling solutions.

The Murmansk region administration plans to open two new waste sorting stations and a waste landfill in the region during 2017. A new regional plan is drafted and confirmed. There is already a concession agreement to build a modern waste sorting station and a landfill for solid waste at Northern part of Murmansk region. In addition to solutions for effective collection and handling of household waste, there is also need for solutions that handle industrial wastewater and hazardous waste.

Competitive advantage of Finns

The brand image of Finnish cleantech solutions is excellent in Russia and there is strong interest towards Finnish waste management solutions. A Russian business delegation, led by Minister of Natural Resources and Environment Sergey Donskoy, visited Finland at the beginning of March 2017. The delegation visited Ekokem hazardous waste handling station in Riihimäki and Finnish waste incinerator plants.

Closeness of Finland enhances interest in Finnish solutions. Finnish arctic expertise is also an asset. Murmansk region is located almost completely north of the Arctic Circle and has a harsh and unstable Arctic climate. Finns are familiar with challenges caused by the location and Finnish waste-to-energy technology suits well the Arctic conditions. In addition, the Finnish Consulate in Murmansk has a good relationship with the local administrators who are committed to get the waste management infrastructure built.

Seize the opportunity – join Cleantech Fact Finding trip to Moscow in September

The Finnish-Russian Chamber of Commerce (FRCC) and The Finnish Embassy in Moscow welcome Finnish companies to join a Fact Finding trip to Moscow September 20-21, 2017.

The program includes meetings with local authorities, companies and other stakeholders, and learning more of the significant opportunities in the region.